LinkedIn, the Microsoft-owned business social network, has made the decision to no longer allow advertisers to target users based on data collected from their participation in LinkedIn Groups. This move comes after a complaint was filed by civil society groups with the European Commission (EC) regarding a potential violation of the Digital Services Act (DSA). The DSA is a set of regulations that came into effect in February and aims to establish a strict governance framework for online content, including rules on algorithmic transparency and targeted advertising.
LinkedIn initially introduced Groups in 2010 as a way for users to connect around shared interests. After several attempts to develop it into a standalone app, LinkedIn focused on integrating Groups within its flagship app in 2018. However, following the complaint in February, the EC requested further information from LinkedIn regarding how targeted ads were being enabled using sensitive personal data, such as race, political allegiances, or sexual orientation. Although LinkedIn argued that it was in compliance with the DSA, the company has now removed the ability for advertisers to use LinkedIn Group membership data to create advertising audiences in Europe.
Patrick Corrigan, LinkedIn’s VP for legal and digital safety, stated that while the company disagreed with the notion that advertisers could indirectly target users based on special categories of data, it decided to remove this feature to prevent any misconception. This voluntary action by LinkedIn is likely an attempt to address the investigation early on, considering that its parent company Microsoft is already facing regulatory challenges in Europe. It’s worth noting that although advertisers can no longer use LinkedIn Group data for targeting, targeted advertising on LinkedIn is still allowed using other data sources.
The European Commission has welcomed LinkedIn’s decision and will monitor its implementation to ensure compliance with the DSA. EU internal market commissioner Thierry Breton emphasized the positive impact of the DSA, stating that it has brought about changes that other laws have not achieved.
This announcement from LinkedIn comes shortly after the EC designated Chinese e-commerce marketplace Temu as a “very large online platform” (VLOP) under DSA regulations. This classification subjects Temu to additional scrutiny due to its extensive reach. Temu is the 24th company to be classified as either a VLOP or a very large online search engine (VLOSE).
Overall, LinkedIn’s decision to disallow targeted advertising based on LinkedIn Group data aligns with the goals of the Digital Services Act and demonstrates the company’s commitment to user privacy and compliance with regulatory requirements. It also highlights the increasing focus on regulating online platforms and their advertising practices, as seen with the classification of Temu as a VLOP.